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Yahoo
6 days ago
- Business
- Yahoo
Canada Goose: Vertical manufacturing an edge against tariffs
This story was originally published on Supply Chain Dive. To receive daily news and insights, subscribe to our free daily Supply Chain Dive newsletter. Canada Goose is using its vertical manufacturing capabilities to adjust production to demand in a market characterized by tariff uncertainty, executives said during a May 21 earnings call. The luxury retailer manufactured over 90% of its down-filled outerwear in the company's facilities in Canada in fiscal year 2025, per an SEC filing. By coordinating its in-house manufacturing with third-party suppliers, Canada Goose was able to adjust efficiently to customer demand. 'Our vertical manufacturing is a real source of competitive advantage for us,' Beth Clymer, president and COO, said. 'We are currently leveraging this capability more than we ever have before, which is especially valuable in today's dynamic market.' Canada Goose owns and controls its entire production process, from raw materials to finished products, allowing for sourcing adjustments to mitigate tariff disruptions. With production primarily based in Canada, the brand is largely unaffected by tariffs due to the United States-Mexico-Canada Agreement, Clymer said. In the last fiscal quarter, however, tariff impacts were primarily felt in Canada Goose's European production, which makes roughly 20% of the company's products. Many brand manufacturers with more global production networks have scrambled to reduce manufacturing exposure to China to avoid hefty U.S. tariffs. SharkNinja, for instance, plans to move nearly all its manufacturing to Southeast Asia by the end of the year. Meanwhile, Colgate-Palmolive is reducing its reliance on suppliers in China while increasing the number of its U.S. manufacturing facilities. But Canada Goose hasn't fully escaped the effects of tariffs. The company decided not to release a financial forecast for fiscal 2026 because of jittery consumers in a changing economy. 'The pull of the guide and the decision not to provide an outlook for the year is entirely around what we see as a fairly uncertain consumer environment around the world,' CFO Neil Bowden told analysts. 'There's no doubt that the trade environment is choppy.' This story was first published in our Procurement Weekly newsletter. Sign up here.
Miami Herald
02-04-2025
- Business
- Miami Herald
Walmart, Uber share food delivery innovation strategies
Editor's note: This article draws on insights from a Grocery Dive, Restaurant Dive, C-Store Dive and Supply Chain Dive co-hosted virtual event panel. You can register here to watch a replay of the full event, "Food Delivery and the Bottom Line." Food delivery has had to accelerate and adapt a lot in recent years. From the pandemic spiking the demand for quick delivery to record-high inflation causing consumers to pull back, grocers and fellow food retailers have had to find ways to meet shoppers' e-commerce expectations of both convenience and affordability. Amid this shifting landscape, retailers have continued to innovate their delivery offerings to better meet consumers' demands and reduce labor. A Walmart and Uber executive each discussed some of their companies' flashy delivery tech that aims to boost efficiency - and needs no driver - during the Thursday virtual event co-hosted by Grocery Dive, Restaurant Dive, C-Store Dive and Supply Chain Dive. Walmart is leveraging its growing drone presence to provide speedy fill-in orders and last-mile delivery to its customers, Alex Blake, the retailer's director of drone delivery, said during the event. The main benefit of drone delivery for Walmart is being able to meet the growing consumer demand for deliveries in 30 minutes or less, Blake said, adding that Walmart's drones can carry 5 to 10 pounds worth of goods, which represent a "meaningful portion of [Walmart's] deliveries today." "We hear that customers ordered candy, soda or ice cream for a last-minute craving, or to have a movie night with their family. We're also seeing urgent care items you might need seasonally, like cold and flu, allergy medicine or COVID tests. Or things people run out of unexpectedly [like] baby formula, pet food," Blake said. Blake also noted that another benefit to drone delivery is that it's a more sustainable and eco-friendly delivery option, cutting down on vehicles on the road, lessening traffic congestion and reducing the overall environmental impact. Walmart's drone presence is most prominent in Texas, with 18 sites in the state, Blake said. Texas is proving to be ideal for drone piloting because the state is "drone-friendly" and flying conditions are optimal, she said. Since launching drone delivery in 2021, Walmart has delivered over 120,000 packages via drones, with further expansion plans currently underway, according to Blake. Walmart is also in the process of transitioning customers using platforms managed by its drone delivery partners over to the Walmart app, Blake said. Walmart's app aims to clearly mark which items are available by drone, ensuring that shoppers can easily see which delivery method will offer the smoothest experience, Blake said. But while Walmart looks to the sky, Uber is eyeing the open road. Hashim Amin, who heads up grocery and retail in North America for Uber, spoke about Uber's continuing efforts to expand autonomous delivery, which, like Walmart's drones, focus on fill-in and last-mile trips to save shoppers a trip to the store. For Uber, autonomous vehicles can take on a few forms, from sidewalk robots for product deliveries to driverless cars transporting individuals. "Around AV, we're still in learning mode," Amin said. "And I think a lot of new technologies are figuring out where they'll play a role and where they'll work well." Autonomous delivery for Uber aims to remove costs from inventory management, better supply chain efficiency and improve processing speed for itself and its merchant partners, according to Amin. Currently, Uber has autonomous delivery programs available in 11 U.S. cities through six partnerships, he said. Catalog management has also been a priority for Uber when expanding its autonomous technology. Amin noted that many younger consumers "love to treat themselves, usually at night." With AI technology, Uber has been helping retailers know which products to keep in stock at these later hours when in-store shopping is less prominent, ensuring that the items seen on the app are readily available in stores. Uber's autonomous vehicles, which service orders placed through the Uber Eats app, also have features like refrigeration, allowing customers to order ice cream and other frozen or refrigerated goods. Amin noted that these features add to the "surprise and delight aspect" of autonomous delivery and that this is "just the beginning" of Uber's innovation in this area. "Autonomous technology is going to be a core part of what we're building and bringing to market at Uber, especially this year," Amin said. Copyright 2025 Industry Dive. All rights reserved.
Yahoo
28-03-2025
- Business
- Yahoo
Build-A-Bear Workshop pulls forward inventory to deflect tariff impact
This story was originally published on Supply Chain Dive. To receive daily news and insights, subscribe to our free daily Supply Chain Dive newsletter. Build-A-Bear Workshop is pulling forward inventory purchases, especially for core products, to mitigate the impact of tariffs from the Trump administration, CFO Voin Todorovic said during a March 13 earnings call. The stuffed animal retailer has collaborated with partners to diversify its supply chain and expand its factory base to manage costs since President Donald Trump's first term, per Todorovic. This year, Build-A-Bear expects less than 50% of its U.S. inventory to be shipped from China. The company will work with its partners and vendors to be more efficient in the face of tariffs, the CFO said, noting that it would raise prices as a last resort. Bringing in more core products, or goods that are sold year-round, earlier gives Build-A-Bear 'flexibility' to address potential tariff impacts, Todovoric explained to analysts in December. The company is also better situated to handle tariffs because of the current makeup of its sourcing operations, Todovoric said earlier this month. 'Our teams have done [a] tremendous job working with our partners to mitigate costs to really diversify our supply chain and to expand our factory base, both to mitigate costs, but also to help grow our business internationally as we have been focused on that aspect of the business,' Todovoric said. Build-A-Bear primarily contracts with factories in China, Vietnam and the U.S., and relies on five vendors for roughly 73% of its sourcing, according to its 2023 ESG report. The company had not published a 2024 version of the report as of press time. The retailer's supplier factories operate their own production facilities and collaborate with other manufacturers to produce goods, including component parts and materials needed for Build-A-Bear products. From there, goods are shipped to warehouses and retail locations within Build-A-Bear's footprint. The retailer's global inventories and distribution move through its 'Bearhouse' facility in Ohio, two third-party warehouse and distribution centers in the United Kingdom and China, and one in California. 'I believe we have [a] strong team in place to help manage these things,' the CFO said of tariffs and the company's sourcing diversification efforts, 'but at the same time, it is very challenging to manage things that keep moving as we go along.' This story was first published in our Procurement Weekly newsletter. Sign up here. Recommended Reading Inside the geographic transformation of supply chains Sign in to access your portfolio
